Land Lease Agreement

LAND LEASE AGREEMENT This LEASE AGREEMENT is made on [effective_date] between [lessor_name], of [lessor_address] (the "Lessor"), and [lessee_name], of [lessee_address] (the "Lessee"). 1. DEMISE The Lessor demises to the Lessee the land described in the Schedule below (the "Demised Land") for a term of [term_years] years commencing from [start_date]. 2. PERMITTED USE 2.1 The Demised Land shall be used solely for [permitted_use]. 2.2 The Lessee shall not use the Demised Land for any unlawful purpose, nor for any purpose requiring a change of land use, without obtaining the requisite permission from the competent authority at its own cost. 3. RENT 3.1 The Lessee shall pay an annual lease rent of Rs. [annual_rent], payable in advance on or before the commencement of each year of the term. 3.2 The rent shall stand escalated by [escalation_percent]% at each renewal or at the intervals agreed between the parties. 4. LESSEE'S COVENANTS The Lessee shall: pay the rent punctually; keep the Demised Land in good order; not commit waste; not erect any permanent structure without the Lessor's prior written consent; not sublet, assign or part with possession without such consent; pay all charges for utilities consumed; and comply with all laws applicable to its use of the Demised Land. 5. LESSOR'S COVENANTS 5.1 The Lessor warrants that it has good title to the Demised Land and full authority to grant this lease, and that the land is free from encumbrance. 5.2 The Lessor shall put the Lessee in peaceful possession on the commencement date and shall not interfere with the Lessee's quiet enjoyment during the term. 5.3 The Lessor shall pay all land revenue, property tax and other statutory levies of a capital nature. 6. STRUCTURES AND IMPROVEMENTS Any structure erected by the Lessee with the Lessor's consent shall, unless otherwise agreed in writing, be removed by the Lessee at the end of the term, and the Demised Land restored to its original condition. Where not removed within thirty days of expiry, such structures shall vest in the Lessor without compensation. 7. TERMINATION AND SURRENDER 7.1 The Lessor may determine this lease if the rent remains unpaid for three months, or on breach of any material covenant not remedied within thirty days of written notice. 7.2 On expiry or determination, the Lessee shall peaceably surrender vacant possession of the Demised Land to the Lessor. 8. REGISTRATION AND STAMP DUTY 8.1 A lease of immovable property from year to year, or for a term exceeding one year, is compulsorily registrable under Section 17(1)(d) of the Registration Act, 1908. This lease shall be registered with the jurisdictional Sub-Registrar. 8.2 Stamp duty is levied at rates prescribed by the State in which the land is situated and varies between States. Stamp duty and registration charges shall be borne by the Lessee unless agreed otherwise. 9. GOVERNING LAW Governed by the laws of India, with the courts having jurisdiction over the Demised Land having exclusive jurisdiction. SCHEDULE — DESCRIPTION OF THE DEMISED LAND [land_description] LESSOR LESSEE [lessor_name] [lessee_name] WITNESSES 1. Name: ______________________ Signature: ______________ 2. Name: ______________________ Signature: ______________ NOTE: Several States restrict the leasing of agricultural land, and some prohibit it or require the lessee to be an agriculturist. Verify the position under the applicable State land legislation before executing a lease of agricultural land.